BAE seals £2.2bn deal to buy US arms company

BAE Systems yesterday completed its $4.5bn (£2.2bn) acquisition of Armor Holding after receiving the go-ahead from shareholders and US regulators. Armor makes military vehicles and armour systems and its acquisition will add to the UK company's increasing presence in the US defence market. The company will become part of BAE Systems land and armaments division, based in Arlington, Virginia. The acquisition is BAE Systems' 15th in the US. Demand for armoured vehicles from the US armed forces is increasing because of their involvement in Iraq and Afghanistan.